House File 598 - Introduced HOUSE FILE 598 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 111) A BILL FOR An Act exempting the sales price of all-terrain vehicles and 1 off-road utility vehicles used primarily in agricultural 2 production from the sales and use tax. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1432HV (2) 85 mm/sc

H.F. 598 Section 1. Section 423.3, subsection 8, Code 2013, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . d. For purposes of this subsection, an 3 all-terrain vehicle and an off-road utility vehicle, as defined 4 in section 321I.1, are exempt under paragraph “a” when used 5 primarily in agricultural production. 6 EXPLANATION 7 This bill exempts the sales price of all-terrain vehicles 8 and off-road utility vehicles used primarily in agricultural 9 production from the sales and use tax. Under current law, such 10 vehicles are not exempt from sales and use tax unless they 11 are directly and primarily used in production of agricultural 12 products. 13 “All-terrain vehicle” means a motorized vehicle with not 14 less than three and not more than six nonhighway tires that is 15 limited in engine displacement to less than one thousand cubic 16 centimeters and in total dry weight to less than one thousand 17 two hundred pounds and that has a seat or saddle designed to be 18 straddled by the operator and handlebars for steering control. 19 “Off-road utility vehicle” means a motorized vehicle with 20 not less than four and not more than eight nonhighway tires or 21 rubberized tracks that is limited in engine displacement to 22 less than 1,500 cubic centimeters and in total dry weight to 23 not more than 2,000 pounds and that has a seat that is of bucket 24 or bench design, not intended to be straddled by the operator, 25 and a steering wheel or control levers for control. 26 By operation of Code section 423.6, an item exempt from the 27 imposition of the sales tax is also exempt from the use tax 28 imposed in Code section 423.5. 29 -1- LSB 1432HV (2) 85 mm/sc 1/ 1